The net proceeds from the issue of the notes will be used for the general corporate purposes of OCBC Bank.
The notes will be issued at an issue price of 100.0% and bear interest at the 3-month Bank Bill Swap reference rate plus 0.48% per annum, payable quarterly in arrears.
The notes are expected to be rated AA- by S&P Global Ratings, and are expected to be issued on September 4. Westpac Banking Corporation acted as Sole Lead Manager and Bookrunner for this issue.
Last month, the Monetary Authority of Singapore (MAS) auctioned $500 million of six-month floating-rate notes with a spread over compounded Singapore Overnight Rate Average, or SORA, on Tuesday. It received $2.1 billion of applications.
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Singapore is adopting SORA as it moves away from the SGD Swap offer rate, which uses the London interbank offered rate in computation.
In Singapore, a few debt securities have already been issued off SORA, the alternative benchmark, including ones from developer CapitaLand Ltd. and the country’s biggest lender DBS Group Holdings Ltd.
